Are you paying a convenience tax on your home loan?

Let’s face it: finding the best deal on your home loan can be a real headache, whether you’re a first-time buyer or an investor. If you don’t know where to look it’s a time-consuming process with a lot of fine print to wade through. 

So opting to go with a bank or lender that you have an existing relationship with might seem like the easiest way to go. But could the cost of convenience be stopping you from getting a better deal?

According to a recent report by the Australian Securities & Investments Commission (ASIC), 60% of Australian homeowners choose to stay with their existing bank or lender when taking out a home loan. ASIC found that most of the time this decision was influenced by convenience.

Homeowners often cited the fact that their existing bank already had all their financial information as their reason for choosing not to search for a better deal for their home loan. But, the report found that this loyalty was not always rewarded; a number of homeowners were disappointed with their bank’s failure to offer rewards or better deals to existing customers.

Managing Director of Marie Mortimer expressed her surprise that so many Aussies still settle for “an overpriced loan from their existing bank.”

“It shows that many borrowers still don’t understand just how simple it is to get a home loan online and how big the savings really are.”

With sites like Mozo doing the maths for you, these days finding a good home loan isn’t quite as tough as you might imagine. In fact, you can even check out the Mozo home loan repayment calculator to see how you can fit a home loan into your budget. Or if the process is entirely new to you then have a look at Mozo’s handy guides for first-time buyers. 

RELATED ARTICLE: Expert tips for home buyers taking advantage of the market

“A surprising number of people currently with a big bank can’t even tell you what interest rate they are paying on their home loan let alone how much that adds up to over time,” added Mortimer.

If you want to make sure that convenience isn’t costing you, then make sure you shop around. Whether you’re a first-time borrower or thinking about switching, looking further afield for a home loan with a better deal could save you a lot of dollars in the long run.

Check out some of the deals in the table below. Or head to Mozo’s home loan comparison tool, if you need help comparing home loan deals. The Mozo home loan comparison tool compares over 500 home loans from over 80 lenders. Just enter how much you want to borrow and over what number of years. You can even sort by what’s most important to you, whether it be a low interest rate or a low comparison rate. 

Now that you know where and how to compare deals, you can start searching for your dream home! Happy house-hunting!

Compare home loan deals - last updated 11 December 2023

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Home Variable Rate

    Owner Occupier, Principal & Interest, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

  • Mozo Expert Choice Badge
    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.

  • Mortgage Simplifier

    LVR<80%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.43% p.a.

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws. Winner of Australia’s Best Essential Bank in the Mozo Experts Choice Awards.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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